Wednesday, December 10, 2014

10/12/2014: Russian CDS: Not a Happy Day


While Ukraine CDS were the worst performing worldwide today (http://trueeconomics.blogspot.ie/2014/12/10122014-ukraine-greece-cds-flash-red.html) Russian CDS were also under pressure.


As noted by @Schuldensuehner Russian CDS reached above 402 and the implied 5 year cumulative probability of default rose to 24%.

Here's updated chart plotting evolution of Russian and Ukrainian CDS:


There is a strong negative relationship between the price of oil and Russian CDS:


So with oil dipping below USD65/bbl today, things were bound to get touchy.

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